Liechtenstein, Austria Hold Key Tax Talks

06.12.2010

Liechtenstein’s Prime Minister and Finance Minister Klaus Tschütscher and Austria’s Vice Chancellor and Finance Minister Josef Pröll met recently in Vienna to hold an open exchange of views on fiscal and financial policy issues and to discuss negotiations on the revision of the bilateral double taxation agreement (DTA) in place between the two countries.

During the course of the discussions, Tschütscher alluded to the principality’s recently agreed reform of taxation and to the state’s new tax law, and updated his counterpart on budgetary consolidation. Austria’s Finance Minister Josef Pröll presented his government’s recently proposed budgetary measures and tax package.

Liechtenstein’s Prime Minister Tschütscher used the opportunity during the course of the meeting to discuss the impending revision of the bilateral DTA between the two countries and to discuss a possible comprehensive agreement on cross-border tax compliance.

In a statement, Tschütscher revealed that both parties have agreed to immediately begin negotiations on the revision of the existing tax treaty in a bid to adapt the agreement to the latest international and European standards. According to Tschütscher, both countries are eager to simultaneously hold exploratory talks on the taxation of foundations, the regularization of hitherto untaxed assets, and on guaranteeing future tax compliance. In view of the many bilateral discussions that have taken place over the course of the last few months, Tschütscher stated, both between and with neighbouring countries, Liechtenstein and Austria also intend to examine the possibility of introducing a bilateral withholding tax rule.

Both ministers also underlined the importance of the now regularly held informal meetings between the finance ministers of Austria, Germany, Luxembourg, Switzerland and Liechtenstein, enabling an exchange of information and views to take place. The next meeting is due to take place in Liechtenstein in March 2011.